Suppose the National Bank has total cash reserves of $2,000 and has $5,000 in total deposits. If its total excess reserves are $1,250, then the reserve requirement is equal to:
a. 25 percent.
b. 15 percent.
c. 10 percent.
d. 5 percent.
e. 20 percent.
b
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Which of the following would cause an increase in aggregate demand (AD)?
A) an increase in interest rates B) a decrease in taxes C) a decrease in price levels D) a rise in the foreign exchange value of the dollar
Which of the following is a deficit item on the U.S. balance of payments accounts?
A) A U.S. firm sells a product to a Mexican firm. B) An Italian tourist in Miami purchases a beach ball. C) A Spaniard buys 100 shares of Ford stock. D) A U.S. resident buys gold from the Japanese central bank.
If some resources went to waste rather to use in production, the economy would operate outside its production possibility curve
a. True b. False Indicate whether the statement is true or false
Refer to the data provided in Table 9.1 below to answer the question(s) that follow.
Table 9.1
Refer to Table 9.1. If the market price is $17, then in the long run the firm will
A. operate and expand. B. operate but not expand. C. shut down, but not go out of business. D. go out of business.